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Future Value. YOU are a new employee with the metro daily planet. The
planet offers three different retirement plans. Plans 1 starts the first day of
work and puts $1,100 away in your retirement acc at the end of every year for
40 years. Plan 2 starts after 10 year and puts away $2,100 every year for year.
Plan 3 starts after 20 year and puts away $4,100 every year for the last 20 year
0 employment. All tree plans guarantee an annual growth rate of 11%.
a. Which plan should you choose if you plan to work at the Planet for
40 years ?
b. Which plan should you choose if you plan to work at the Planet for
only the next 30 years ?
c. Which plan should you choose if you plan to work at the Planet for
only the next 20 years ?
d. Which plan should you choose if you plan to work at the Planet for
only the next 10 years ?
e. What do the answers in parts (a) through (d) imply about savings ?
P4-5
Future Value. YOU are a new employee with the metro daily planet. The
planet offers three different retirement plans. Plans 1 starts the first day of
work and puts $1,100 away in your retirement acc at the end of every year for
40 years. Plan 2 starts after 10 year and puts away $2,100 every year for year.
Plan 3 starts after 20 year and puts away $4,100 every year for the last 20 year
0 employment. All tree plans guarantee an annual growth rate of 11%.
a. Which plan should you choose if you plan to work at the Planet for
40 years ?
b. Which plan should you choose if you plan to work at the Planet for
only the next 30 years ?
c. Which plan should you choose if you plan to work at the Planet for
only the next 20 years ?
d. Which plan should you choose if you plan to work at the Planet for
only the next 10 years ?
e. What do the answers in parts (a) through (d) imply about savings ?